Monday, December 22, 2008

Banker’s Greed

It is generally understood that the financial crisis, which caused the economic crisis, resulted from bankers taking unwise risks and making loans to unqualified borrowers. Until the financial crash, these bankers were getting paid huge compensation packages based on earnings that were a house of cards and a disaster waiting to happen.

The government had to provide relief and pump money into a bankrupt system for the good of the country. Despite the purpose of this relief (or “bail out”) package the banks aren’t lending. There are reports that people who want to buy cars can’t because they can’t get a car loan. So it looks as if these greedy and incompetent bankers took the government money and are either sitting on it or using it to make acquisitions. So much for the welfare of the people.

This is a moral lesson. First, the greed and poor judgment of some can cause tremendous hardship on others. Secondly, such people aren’t trustworthy, so there must be stringent conditions, monitoring, regulations, and reporting when you give such people large sums of money. Their behavior is further proof of the depravity of people, who without God in their lives don’t know how to conduct themselves properly. All this happened fast, so I don’t blame the government as much as I blame the crooks on Wall Street. I believe they must be held accountable very quickly, or face severe punishment.

You don’t believe me when I talk about depravity? Look at the governor of Illinois, or Bernie Madoff. While they are rather spectacular examples, many people are engaged in much smaller but nevertheless dishonest dealings of some sort or another. We as a nation are trying to get rid of God, but when you do, you can see what happens. There is no moral compass, no Higher Authority. We are left to our own devices, and it isn’t a pretty picture.

Having said all this, I believe that the lending institutions must give loans only to qualified borrowers. While some people may be complaining to the media that they can’t get a car loan, what we don’t know is that they might have $10,000 in credit card debt and a huge mortgage. Some people have overextended themselves so much that they simply aren’t even remotely qualified for a loan.

We have to get rid of the notion of instant gratification, and accept delayed gratification. We buy things we don’t need with money we don’t have to impress people we don’t even like! Let’s get back to those old fashioned principles, which work the best. My prayer is that this country will turn back to God, not making it a theocracy, but that more people will go to church or synagogue, and learn about God and His ways, which are always the best.